| Previous Section | Index | Home Page |
Child Care Allowance
Mr. Hanson: To ask the Secretary of State for Social Security what steps he is taking to monitor the end use of child care allowance. [6077]
Mr. Andrew Mitchell: In claims for family credit and disability working allowance, allowance is made for child care charges only after the information given by claimants is verified by the child care provider.
Child Support
Mr. Bayley: To ask the Secretary of State for Social Security for what reasons the Government decided to increase the minimum payment under the Child Support Act 1991 from £2.35 to £4.80; what additional savings he expects to accrue to the budgets for each of the benefits administered by his Department as a result of this policy change; and what are the purposes to which these savings will be applied. [6185]
Mr. Andrew Mitchell: The proposed change will reinforce a key principle of the Child Support Act 1991 that parents are responsible for providing financial support for their children. Absent parents who are sick or disabled, or who have responsibility for children in their new family, will continue to be exempt from this payment.
Parents with care, and children, will benefit. Those parents receiving income support will build up a higher entitlement to the child maintenance bonus when it is introduced in April 1997 and others in work will gain straight away from the increased payment.
The long-term benefit savings, arising from reduced expenditure on income-related benefits paid to parents with care, are expected to be £15 million. Most of the savings will be in respect of income support.
The proposal forms part of the measures announced by my right hon. Friend the Secretary of State on 29 November which will in total save around £1 billion in the long term and will help contain real annual growth in social security spending to 1.3 per cent. between 1996-97 and 1998-99.
Mr. David Nicholson:
To ask the Secretary of State for Social Security how many cases of (a) fraud and (b) alleged fraud, have arisen from the application of the Child Support Act 1991 to absent fathers who are self-employed. [7174]
Mr. Mitchell:
It is not a business requirement of the Child Support Agency to keep statistics centrally on allegations to fraud. Any such allegation in respect of a
9 Jan 1996 : Column: 162
self-employed absent parent is referred to the Contributions Agency for investigation.
Mr. Chris Smith:
To ask the Secretary of State for Social Security if he will list the consultancies employed by his Department in the last five years, indicating (a) what the consultancies were for, (b) to whom the consultancies were awarded, (c) the total amount spent on each consultancy and (d) the total amount spent on each contract in the last five years. [6555]
Mr. Burt:
The information is not available in the format requested. Such information as is available is as follows:
The Department's use of consultants is set against the background of a huge business with a major programme to deliver policy changes and business efficiencies.
Among other things consultants have been used to contribute to:
9 Jan 1996 : Column: 163
From July/August 1993, the DSS commenced using framework agreements for the procurement of management and IT consultancy. Framework agreements in respect of management consultancy and related services were awarded to the following companies:
Increasing efficiency;
Market testing initiatives;
Major structural changes following the creation of executive agencies;
Introduction of new benefits;
Development of information systems; and
Implementation of Departmental programmes.
Framework agreements in respect of IT consultancy and related services were awarded to the following companies:
Andersen Consulting
Coopers and Lybrand
Ernst and Young
EFD (Electronic Facilities Design)
KPMG Peat Marwick
Merz and McLellan
PA Consulting
P-E International
Price Waterhouse.
Admiral Management Services
Andersen Consulting
ASE Consulting
Computer People Limited
Coopers and Lybrand
Cray Systems (P-E International)
CSS Trident
Easams
EDS
FI Group
Hoskins
IBM UK Ltd
International Computers Ltd.
Logica
Methods Applications
NEF Computer Services (Nesco)
Most contracts let since August 1993 have been awarded to suppliers on these framework agreements.
PA Consulting
Parity Solutions
Price Waterhouse
Sema Group
Siemens Nixdorf
Taskforce Group plc.
| Year | Number of contracts | Total cost (£ million) |
|---|---|---|
| 1990-91 | 952 | 83.2 |
| 1991-92 | 933 | 69.7 |
| 1992-93 | 129 | (61)36.4 |
| 1993-94 | 235 | 34.0 |
| 1994-95 | 197 | 26.1 |
(61) Figures for 1992-93 onwards refer solely to expenditure on consultancy services following work undertaken for the Efficiency Scrutiny into the Government's Use of External Consultants. Figures for earlier years include the cost of contracted services.
Retirement Pensions
Mr. Chris Smith: To ask the Secretary of State for Social Security what estimate he has made of the proportions of men and women who will retire with a full entitlement to a basic retirement pension in (a) 2025 and (b) 2035. [6528]
Mr. Andrew Mitchell: The information is not available in the format requested. By 2025, the large majority of men and approximately two thirds of women will have entitlements to a full basic pension.
Mr. Eric Clarke: To ask the Secretary of State for Social Security if he will estimate the cost in 1996-97 of paying a basic pension supplement to all pensioner units whose total pension income from all sources is less than the level of income support plus £5 for a single pensioner and £8 for a couple, raising their pension incomes to the income support level plus £5 for single pensioners and £8 for pensioner couples; and what would be the annual cost of maintaining pensioners' pension incomes at that level in real terms for each year until 2001-02, assuming the 1996-97 income support regime and giving costs net of any effects on tax/benefit revenues. [6703]
Mr. Mitchell: The estimated cost in 1996-97 of raising the total pension income from all sources of all pensioner units to income support levels plus £5 for a single pensioner and £8 for a pensioner couple is £3.05 billion. It is not possible to give estimates of this cost to the year 2001-02 as reliable forecasts of future levels of pensioners' incomes are not available for this period.
Notes:
1. It has been assumed that the pensioner supplement would be paid as an increase in income support levels. Maintaining the current income-related benefit system involves aligning the thresholds and
9 Jan 1996 : Column: 164
- income for assessment purposes in the other income-related benefits. As a result, there are increased costs in the housing benefit and council tax benefit included in the total.
2. To raise pension-only income to the levels specified implies that other income would be disregarded. The costs reflect this assumption also.
3. No account has been taken of any additional costs that would arise from the abolition of the existing capital limits in the income-related benefits which would be necessary to ensure that those above these limits also received any required increase in pension income.
4. Income support is not taxable for claimants over 60 years of age so there are no net tax effects from the increased payment in income support.
5. The costs have been estimated using data drawn from the May 1994 income support quarterly statistical inquiry and the 1991, 1992 and 1993 family expenditure surveys, uprated to 1996-97 prices and benefit levels and rounded to £50 million.
Mr. Mitchell: The available information is in the table.
| Specified pensioner income level | Estimate cost in 1996-97 £ billion |
|---|---|
| (a) Single pensioners at minimum of £69.20 | 0.8 |
| (b) Single pensioners at minimum of £73.80 | 1.3 |
| (i) Couple pensioners at minimum of £107.10 | 1.1 |
| (ii) Couple pensioners at minimum of £112.25 | 1.5 |
1. It has been assumed that the pensioner supplement would be paid as an increase in income support levels. Maintaining the current income-related benefit system involves aligning the thresholds and income for assessment purposes in the other income-related benefits. As a result, there are increased costs in the housing benefit and council tax benefit included in the total.
2. To raise pension-only income to the levels specified implies that other income would be disregarded. The costs reflect this assumption also.
3. No account has been taken of any additional costs that would arise from the abolition of the existing capital limits in the income-related benefits which would be necessary to ensure that those above these limits also received any required increase in pension income.
4. As income support is not taxable for claimants over 60 years of age, there will be no net tax effects from the increased payments in income support.
5. The costs have been estimated using data drawn from the May 1994 income support quarterly statistical Inquiry and the 1991, 1992 and 1993 family expenditure surveys, uprated to 1996-97 prices and benefit levels and rounded to £50 million.
9 Jan 1996 : Column: 165
Mr. Hutton: To ask the Secretary of State for Social Security if he will estimate the cost in 1996-97 of paying a basic pension supplement to all pensioner units whose total pension income from all sources is less than £67.05 for a single pensioner or £104.10 for pensioner couples, raising their pension incomes to those levels; and what would be the annual cost of maintaining pensioners' pension incomes at those levels in real terms for each year until 2001-02, assuming the 1996-97 income support regime and giving costs net of any effects on tax/benefits revenues. [6708]
Mr. Mitchell: The estimated cost in 1996-97 of raising the total pension income from all sources of all pensioner units to £67.05 for a single pensioner or £104.10 for pensioner couples is £1.9 billion. It is not possible to give estimates of this cost to the year 2001-02 as reliable forecasts of future levels of pensioners' incomes are not available for this period.
Notes:
1. It has been assumed that the pensioner supplement would be paid as an increase in income support levels. Maintaining the current income-related benefit system involves aligning the thresholds and income for assessment purposes in the other income-related benefits. As a result, there are increased cost in the housing benefit and council tax benefit included in the total.
2. To raise pension only income to the levels specified implies that other income would be disregarded. The costs reflect this assumption also.
3. No account has been taken of any additional costs that would arise from the abolition of the existing capital limits in the income-related benefits which would be necessary to ensure that those above these limits also received any required increase in pension income.
4. As income support is not taxable for claimants over 60 years of age, there will be no net tax effects from the increased payments in income support.
5. The costs have been estimated using data drawn from the May 1994 income support quarterly statistical inquiry and the 1991, 1992 and 1993 family expenditure surveys, uprated to 1996-97 prices and benefits levels and rounded to £50 million.
Mr. Mitchell: The estimated cost in 1996-97 of raising the incomes of all pensioner units to at least the level of income support plus £5 for a single pensioner and £8 for pensioner couples is £800 million assuming the most recent levels of non-take-up. It is not possible to give estimates of this cost to the year 2001-02 as reliable forecasts of future levels of pensioners' incomes are not available for this period.
- Notes:
- 1. It has been assumed that the pensioner supplement would be paid as an increase in income support levels. Maintaining the current income-related benefit system involves aligning the thresholds and income brought to account in the other income-related benefits. As a result, there are increased costs in the housing benefit and council tax benefit included in the total.
- 2. It has been assumed that the income of pensioners is the current income for assessment purposes in income support.
9 Jan 1996 : Column: 166
- 3. No account has been taken of any additional costs that would arise from the abolition of the existing capital limits in the income-related benefits which would be necessary to ensure that those above these limits also received any required increase in pension income.
- 4. The costs have been; estimated using data drawn from the May 1994 income support quarterly statistical inquiry and the 1991, 1992 and 1993 family expenditure surveys, uprated to 1996-97 prices and benefits levels and rounded to £50 million.
Mr. Benton: To ask the Secretary of State for Social Security if he will estimate the cost in 1996-97 of raising the incomes of all pensioner units to at least the level of income support; and what would be the annual cost of maintaining pensioners' incomes at that level in real terms for each year until 2001-02, assuming the 1996-97 income support regime and the most recent levels of non-take-up. [6705]
Mr. Mitchell: Those pensioner units whose incomes are below income support levels are raised to that level if they take up income support. All other pensioner units are either ineligible for income support, by virtue of their incomes, or choose not to take it up. As a result, there are no costs in any year of raising the incomes of all pensioner units to at least income support levels assuming the most recent levels of non-take-up.
Notes:
1. It has been assumed that the income of pensioners is the current income for assessment purposes in income support.
Mr. Mitchell: My right hon. Friend the Secretary of State has announced his intention to increase the state pension by 3.9 per cent. in April 1996.
| Next Section | Index | Home Page |